Sanchez Clears Out Of Eagle Ford?s Javelina Asset In $105 Million Sale
18 Aug 2017 at 10:37am
With startling speed, Sanchez Energy Corp. (NYSE: SN) built a 70,000 net acre dry gas position called Javelina and, sooner than some analysts expected, the company said Aug. 17 it will sell the Eagle Ford field named for a type of wild boar.
Sanchez agreed to sell its assets in the Eagle Ford Shale, largely in La Salle and Webb counties, Texas, for about $105 million cash. The buyer was not disclosed.
At EnerCom?s The Oil & Gas Conference on Aug. 14, CEO Tony Sanchez III donned a masterly poker face as he told analysts and media he thought the Eagle Ford, while now a more mature basin, would still see transactions.
?You hear rumblings of potential sales,? he said
In an Aug. 17 news release, Sanchez said the Javelina transaction highlights the value of its grassroots leasing program, which had sewn up a largely contiguous position in the Eagle Ford?s dry gas window during the past 18 months.
US Drillers Cut Oil Rigs For Second Straight Week
18 Aug 2017 at 10:32am
U.S. energy firms cut oil rigs for a second week in three, data showed on Aug. 18, with drillers cutting spending plans in reaction to declining crude prices.
Drillers cut five oil rigs this week, bringing the total count down to 763, Baker Hughes, a GE company (NYSE: BHGE), said in its report on Aug. 18. That compares with 406 active oil rigs during the same week a year ago. Drillers have added rigs in 56 of the past 64 weeks since the start of June 2016.
The rig count is an early indicator of future output. U.S. production is expected to rise to 9.4 million barrels per day (MMbbl/d) in 2017 and a record 9.9 MMbbl/d in 2018 from 8.9 MMbbl/d in 2016, according to federal projections.
NAPE: Chevron Looks To Make Deals In Permian
18 Aug 2017 at 8:38am
HOUSTON?Chevron Corp. (NYSE: CVX), one of the largest acreage holders in the Permian Basin, is ready for more A&D action as it looks to create value for shareholders.
The San Ramon, Calif.-based company is reaching out to companies interested in the Permian Basin, where its net production was about 90,000 barrels of oil and 327 million cubic feet of gas in 2016.
Chevron, like some of its peers, is in the midst of shedding assets worldwide in hopes of bringing in billions of dollars in a lower commodity-price environment. Deals in what could be considered the most watched play in the world?the Permian?aren?t off the table.
Governor Urges Trump To Drop Virginia From Offshore Drilling Plan
18 Aug 2017 at 8:37am
Virginia Gov. Terry McAuliffe urged the President Donald Trump?s administration to exclude his state from a federal offshore oil and gas drilling plan, citing concerns about revenue sharing and environmental issues, in a letter that his office revealed on Aug. 17.
McAuliffe, a Democrat, had previously said that any federal drilling plan that includes his state must include a revenue-sharing program.
In the letter, dated Aug. 11 and sent to Kelly Hammerle, the national program manager of the U.S. Bureau of Ocean Energy Management (BOEM), McAuliffe said he could not trust Trump, a Republican, to share revenues because he had proposed axing revenue sharing with Gulf Coast states where the drilling already occurs.
Blackrock Manager Confirms Boost In Energy Holdings
18 Aug 2017 at 8:12am
BlackRock Inc.?s largest mutual fund hiked its exposure to ?select names? in energy as the sector has lagged this year, one of its portfolio managers said on Aug. 17.
?The underperformance of energy stocks even as oil prices have stabilized creates opportunities for investors,? wrote Russ Koesterich, a manager of the $39 billion BlackRock Global Allocation Fund, in a note.
?Black Swans? In Energy
18 Aug 2017 at 8:00am
Joe Brusuelas, RSM, and Chris Ortega, TPG Capital, discuss the anomalies of a changing energy market.
Oil Nudges Higher On Tightening Supplies, Weak Dollar
18 Aug 2017 at 7:47am
Oil prices edged higher on Aug. 18, with investors offered some encouragement from data hinting that oversupply was easing steadily and a weaker dollar.
But prices were still on track to close the week 2% to 3% lower after concerns about weaker Chinese oil demand weighed earlier in the week.
At 7:52 EDT, benchmark Brent crude futures were up 6 cents at $51.09 per barrel (bbl) on the day but still about 2% lower on the week.
U.S. West Texas Intermediate (WTI) crude futures were up 11 cents at $47.20/bbl, although they were also set to end the week more than 3% lower.
Chevron Drops Appeal Over Landmark Australian Tax Ruling
18 Aug 2017 at 5:50am
Chevron Corp. (NYSE: CVX) has withdrawn an appeal to Australia's High Court over a disputed A$340 million (US$268 million) tax bill, leaving in place a landmark court ruling on related-party loans that could affect other multinational companies.
"Chevron Australia has reached agreement with the Australian Taxation Office on the loan transfer pricing dispute and have withdrawn our appeal to the High Court," the company said in an emailed statement.
"Chevron believes the agreed terms are a reasonable resolution of the matter and are not expected to have a material impact on the year to date results of the company," the company added.
Energen Reportedly Fending Off Heavy Pressure To Sell Itself From Activist In...
18 Aug 2017 at 5:40am
Elliott Management Corp. has quietly ramped up pressure on Energen Corp. (NYSE: EGN) to explore a sale, according to two people familiar with the matter, as the U.S. oil and gas producer focused in the Permian Basin fends off heavy pressure from activist investors to sell itself.
The behind-the-scenes push by Elliott comes as fellow activist shareholder, Corvex Management, has waged a public campaign to force Energen to put itself on the auction block. Earlier this week, Corvex threatened to wage a proxy fight if Energen fails to meet its demands.
Elliott Management's position makes it an ally of Corvex, which will need the support of major shareholders in its quest to get Energen to find a buyer. Elliott shares Corvex's view that Energen's lagging stock price cannot be fixed through operational changes, and that the best way to boost its value significantly is through a sale.
Exco?s $300 Million Eagle Ford Deal Unravels
17 Aug 2017 at 2:59pm
Exco Resources Inc.?s (NYSE: XCO) $300 million Eagle Ford sale to Venado Oil and Gas LLC has been scuttled and the company may find liquidity challenges ahead, such as its ability to make debt interest payments.
The deal, which was to have closed in June, was sidetracked by a wrangling over a natural gas contract with a Chesapeake Energy Corp. (NYSE: CHK) subsidiary that ended up in federal court.
Venado and Exco extended the close to Aug. 15, when the agreement was terminated after the terms, including the natural gas contract, could not be met.
Stack Behemoth: Silver Run, Alta Mesa, Kingfisher Form $3.8 Billion Pure Play
17 Aug 2017 at 12:25pm
Blank-check company Silver Run Acquisition Corp. II (NASDAQ: SRUNU) found its ?pay to the order of? in an ambitious merger linking Silver Run, Alta Mesa Holdings LP and Kingfisher Midstream LLC into the first publically traded Stack pure-play company.
Once merged, the trio of companies will take the name Alta Mesa Resources Inc. with a combined, estimated value of about $3.8 billion. The Kingfisher Midstream assets, which alleviate any concerns about takeaway capacity for the company, may eventually be monetized and spun out separately through an IPO to help pay for upstream development, the companies said.
The deal also represents a departure from other recent special-purpose acquisition companies (SPAC) that largely made moves in the Permian Basin.
NAPE: Oil, Gas Industry Weathering Climate Change Storm
17 Aug 2017 at 10:12am
HOUSTON? The oil and gas industry often gets a bad rap when it comes to climate change. However, Steve Goreham, executive director of the Climate Science Coalition, encouraged the industry to push back against its climate change persona at the Summer NAPE Expo on Aug. 16.
One leading indicator that the oil and gas industry is not destroying the environment, he said, is the Renewable Energy Industrial Index, which tracks the stocks for the 30 largest renewable energy companies. The index sits far below the original value back in 2002, he said.
Russian Watchdog Says Schlumberger-Eurasia Drilling Deal ?Has Big Problems?
17 Aug 2017 at 6:23am
The acquisition of a 51% stake in Russia's Eurasia Drilling Co (EDC) by U.S. oilfield services giant Schlumberger "has big problems" in the current political situation, the head of Russia's competition watchdog said on Aug. 16.
Carbon Natural Gas Corrals Appalachian Producing Assets In $21.5 Million Acqu...
17 Aug 2017 at 6:15am
Carbon Natural Gas Co. picked up Appalachian natural gas producing properties and related facilities for about $21.5 million, the Denver-based company said Aug. 16.
The assets, located primarily in West Virginia, currently produce roughly 7.5 million cubic feet per day (MMcf/d), net (100% gas). Proved developed producing reserves are estimated at 52 Bcf, as of July 1.
The acquisition also included about 311 miles of natural gas pipelines, gathering lines and related compression facilities.
EIA: US Crude Stockpiles Fall The Most In Nearly A Year
16 Aug 2017 at 12:35pm
U.S. crude oil inventories fell for the seventh consecutive week in their largest drawdown in nearly a year while exports and production continued to rise, the Energy Information Administration (EIA) said Aug. 16.
Crude inventories fell 8.95 million barrels (bbl) in the week to Aug. 11, nearly three times analysts' expectations for a decrease of 3.1 million bbl and the largest draw in since the week to Sept. 2.
At 466.5 million bbl, crude stockpiles were at their lowest since January 2016. Including emergency reserves, crude stocks were at 1.15 billion bbl, the lowest levels since October 2015, according to EIA data.